Protecting business assets during a divorce

On behalf of Beverly L. Brennan, P.A. posted in high asset divorce on Monday, June 5, 2017.

Divorce is rarely easy or convenient for any couple, but certain factors can create additional confusion and complication such as whether or not a couple has children or own a business together. For couples who have undertaken business endeavors together in Florida, separating assets will undoubtedly need to be done carefully.

The Huffington Post provides couples with sage advice for effectively protecting their business in the event of a divorce. These suggestions include the following:

Keep finances in check: A positive financial record, devoid of unnecessary debt or discrepancies can significantly expedite the process of asset separation during divorce. With all financial expenditures reconciled immediately, asset separation can commence that much faster.

Separate personal and business: Couples should take great care not to mix their personal and business finances. Doing so can cause confusion and create tension as couples disagree on who owns what or who has spent money that may be missing from ledgers.

Limit borrowing: While a couple may be tempted to build their business with personal loans coming directly from a personal bank account, doing so can be detrimental in a divorce. Should a couple need to borrow money, they should accept a loan from a third-party organization to keep finances separated.

Sacrifice other assets: When the separation of business assets begins during divorce proceedings, a business could be in peril if terms are not negotiated the right way. Couples may need to sacrifice other assets like vehicles or properties in order to maintain their business and its success.

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